Did Sandy Hook Spell Doomsday for Smith & Wesson?

In the wake of last week's shootings at Sandy Hook Elementary School, investors are selling off shares of gunmakers Smith & Wesson and Sturm, Ruger . Guns and ammo retailers aren't faring much better, as shares of sporting-goods chains Cabela's and Dick's continue to slide, while Wal-Mart -- long known among shooting enthusiasts for having some of the best prices on ammunition around -- are suffering as well.

With Congress moving swiftly to write new regulations for gun sales and ownership, this all seems a logical reaction to the headline news. Yet at the same time as investors rush to sell their shares, gun buyers are rushing to buy firearms -- before any new laws hit the books. Could it be that investors are missing a golden opportunity to "get greedy when others are fearful"?